Chinese online sports lottery service provider 500.com has published unaudited financial results for the fourth quarter and full-year ended December 31, 2020. In the posting, the reported net revenues of RMB9m ($1.4m) for Q4 of 2020, a 4.7% increase from 2019’s Q4 of RMB8.6m and a 47.5% quarterly growth compared to Q3 revenues of RMB6.1m.
The company’s operating loss for Q4 stood at RMB51.4m ($7.9m), an improvement on 2019’s operating loss for the same period of RMB307.1m. It also recorded a net loss for Q4 of RMB56.1m, a decrease from the RMB322.7m registered the year before.
As for the full-year trading figures, 500.com recorded RMB21.8m in revenues, a decline on 2019’s RMB39.7m, while the operating loss for the period was RMB190.8m, an improvement on the RMB642.8m operating loss recorded in 2019.
The net loss for the full year was RMB223.2m, a drop compared to 2019’s RMB651.3m.
The company also declared in its report that it has entered into a share subscription agreement, under which it has conditionally agreed to subscribe for 169,354,839 shares of Loto Interactive Limited for HK$0.62 per share for a total consideration of roughly HK$105m (approximately $13.5m).
The firm currently owns approximately 33.7% of the issued share capital of Loto Interactive. Upon completion of the share subscription, it expects to own approximately 54.2% of its issued share capital and Loto Interactive will become a subsidiary of the company.
500.com’s Board of Directors approved the focus on the blockchain and cryptocurrency industries due to the success Loto Interactive had with Bitcoin mining.
The company is set to acquire 5,900 bitcoin mining machines from a non-US seller for a total payment of approximately RMB55.2m ($8.5m).